The Denmark-based firm reported 3.5% organic growth in EBITDA for the year, to DKK 1.3 billion, it said, while net profit decreased to DKK 666 million, compared to DKK 963 million the previous year.

"2018 was a good year for Scandinavian Tobacco Group," Scandinavian Tobacco Group Niels Frederiksen chief executive said.

"We delivered on the financial targets for the year, saw good progress on the strategy and took significant steps in the development of our company with the launch of Fuelling the Growth, a group-wide transformational program that will increase our commercial competitiveness and deliver net savings at a run-rate of DKK 250 million by the end of 2021 and will support our financial ambition of 3-5% average annual organic growth in EBITDA."

Growth Driver

The company said that its biggest category – handmade cigars – 'continues to perform well and remains an important growth driver' at the business.

In 2018, the company purchased online retailer Thompson Cigar and also expanded its brick and mortar cigar network.

"With these steps we are well-positioned for future growth and development in this category," said Frederiksen.